Yes, but there are several reasons behind it.
1) It is influential due to the fact that it is HQ of the Roman Catholic Church (This is a fact that we've already established)
2) The Lateran Treaty between Pope Pius and Mussolini gave territory that was once Italian to the Popes. The new province is to simulate this transfer
3) Plus, both the Vatican and the LoN/UN could serve as mediators to world peace.
1) It is influential due to the fact that it is HQ of the Roman Catholic Church (This is a fact that we've already established)
2) The Lateran Treaty between Pope Pius and Mussolini gave territory that was once Italian to the Popes. The new province is to simulate this transfer
3) Plus, both the Vatican and the LoN/UN could serve as mediators to world peace.